♦ The Total Industry Volume (TIV) for the month declined by 13% or 6,482 units month-on-month compared to the TIV for August.
♦ The decline in sales was attributed to many holidays and also the belief by some consumers that Budget 2020 would have something which would reduce new car prices. However, it should be apparent that for some time now, changes affecting the auto industry are not announced during the Budget presentation (as they were in the 1990s and before).
♦ The TIV in September 2019 was 43% higher than in the same month in 2018 because, a year ago, the GST-free period had ended and sales slowed down substantially. 40,266 passenger vehicles (excluding pick-up trucks) were registered in September 2019 compared to 27,018 vehicles in September 2018.
♦ However, for commercial vehicles, the difference was small – 4,400 vehicles in 2019 against 4,222 in 2018.
Source: Monthly reports of the Malaysian Automotive Association (MAA)
♦ Going into the fourth and final quarter of the year, October sales are expected to improve and sales promotions start kicking in to start clearing stock before the year ends.
♦ The cumulative sales volume after 9 months has reached 442,991 units, 3% lower than for the same period in 2018. The MAA has forecast 600,000 units for 2019 so the remaining volume is 157,009 units. With 3 months to go, that means 52,336 units must be delivered during each of the month.
♦ Cumulative production, however, was higher in 2018 for the first 9 months with 426,041 units leaving local plants. For the same period in 2018, the total number was 420,498 units. To see what vehicles each plant produced this here, click here.
Edaran Tan Chong Motor Sdn Bhd (ETCM) has unveiled their latest Nissan Retail Concept (NRC) to further improve the overall Nissan customer experience in line with their ever-evolving global presence. The first Nissan showroom to adopt this new retail concept is Nikaijaya Resource (KL) Sdn Bhd. (more…)
For most car companies, the southern region of Peninsular Malaysia accounts for many of their new vehicle sales. It is a prosperous region with steady development and opening of new townships. For this reason, network development gives a lot of focus to Johor and recently, Naza Kia Malaysia opened a new 3S outlet in Tampoi, Johor Bahru, in partnership with authorised dealer Supreme Priority Sdn Bhd.
Located along Jalan Tampoi, the Kia Tampoi 3S Centre has a built-up area of 18,000 square feet. Its showroom can display up to 7 vehicles so visitors will be able to see a good selection of models. As a 3S centre, it offers sales, service and spare parts and is geared to handle up to 100 Kia vehicles a month. Supreme Priority invested RM5 million to establish this 3S outlet.
Serving owners in Tampoi and surroundings
The Kia Tampoi 3S Centre is also intended to serve owners in the surrounding areas of Tampoi New Village, Skudai, Nusajaya and Larkin. Its strategic location means that they now have a shorter distance to travel to get full aftersales support.
Kia Picanto – one of the latest models available
“With the new Kia Tampoi 3S Centre, we have altogether 6 Kia outlets in Johor and with that, we are confident we will be able to cater to the needs and demands of our customers and future customers here. Johor has been a significant market for us as 90% of Korean car owners here own a Kia,” said R. Devaraju, Deputy Group CEO, Automotive Group, Naza Corporation Holdings.
Mr. Devaraju added that the company has plans in the pipeline to further enhance the current network and expand on the 45 Kia outlets nationwide.
Pending official data from the Malaysian Automotive Association later in the month, Proton has announced that it has risen to No.2 position in overall sales in July 2019. The last time the carmaker was in a similar position was March 2016, while the last calendar year it finished in second was in 2015.
The ascent to the second overall position came with the delivery of 8,590 vehicles during the month, providing a positive start to the second half of the year. It is also the seventh consecutive month of growth and Proton is the only brand to have such momentum in 2019.
47% improvement in 12 months
The brand’s market share for the month is estimated at 16.5% with a Total Industry Volume (TIV) estimated at 51,960 units. Based on cumulative sales for the year, Proton’s overall market share should be around 15% on a volume of 52,269 units. This time last year, Proton’s cumulative sales had reached 35,561 units so it’s a 47% improvement.
12 months ago, automotive sales in Malaysia received a boost when a tax holiday was implemented from June to August. Proton, like all the other brands, posted its best numbers for 2018 during that 3-month period. In 2019, even without the benefit of the tax holiday, Proton’s sales have continued to show positive growth although not as spectacular as the year before.
“For the rest of 2019, we intend to consolidate our position to finish the year
ranked second for the first time in 4 years.”
Dr. Li Chunrong, Proton CEO
Ahead of schedule
“Proton’s return to second place overall in the Malaysian automotive market has happened ahead of schedule. The growth in demand for our products show we are on track to meet our long-term targets and for the rest of 2019, we intend to consolidate our position to finish the year ranked second for the first time in 4 years,” said Dr. Li Chunrong, CEO of Proton.
“With the launch of the updated 2019 Proton Saga set to take place shortly and our other product introductions in the pipeline, the company is quietly confident of even better results in the future,” he added.
On the performance of the various models, Dr. Li said the Persona is now the sales leader in a segment that is ruled by Japanese products. “The Proton Saga is still a popular choice amongst first-time car buyers looking for a safe, reliable and economical vehicle. Even the Proton Iriz has seen a surge in demand, with sales growing by over 50%, so the company is humbled by the trust Malaysian car buyers are putting in our brand,” he said.
Visit www.proton.com to know more about the models available and where to view, test or purchase them.
It’s evident that Proton sales this year have been growing steadily and the brand has been edging upwards on the chart towards Perodua, which has been No. 1 since 2005. Yet, Perodua remains confident that in the remaining 6 months of 2019, it will continue to maintain its strong sales and has even revised upwards its sales target for the year to 235,000 units. This is 4,000 units higher than the 231,000-unit target announced when the year began.
To put things into perspective, Perodua sold 227,243 vehicles in 2018, which was the highest annual sales achievement in its history. In the first half of 2019, Perodua sold some 121,800 vehicles – 4% more than the 117,100 units it sold in the same period last year – backed by sustained healthy demand for all its models.
Speaking to the media today, Perodua President & CEO, Dato’ Zainal Abidin Ahmad, said that from January through June this year, total bookings stood at 190,765 units, more than 3% up on the 184,949 orders collected in the same 5-month period last year.
“The increase in demand for our vehicles in the first 6 months of 2019 has had a positive impact on the automotive ecosystem as a whole, with parts purchases amounting to RM2.7 billion during this period,” Dato’ Zainal Abidin Ahmad said. “Based on our forecast for the second half of the year, we expect to purchase a total of RM5.4 billion worth of parts for the whole of 2019.
He said that Perodua is also working with the Daihatsu Motor Company of Japan to further develop its component suppliers to explore markets beyond Malaysia, and that this forms part of the company’s commitment to build Malaysia’s automotive support industries.
Second half outlook
On the outlook for the second half of 2019, Dato’ Zainal said, “There is good news in the market as the central bank has reduced the overnight policy rate, which will help in promoting consumer spending. That said, we should remember that last year there was a big incentive for consumers to buy cars with the tax holiday, which was announced after the outcome of the country’s 14th General Election.
“Based on our internal calculations, the industry has outperformed expectations in the first half of this year – Malaysia’s Total Industry Volume (TIV) has grown 2.4% to 296,800 units,” Dato’ Zainal added.
He explained that the tax break incentive had a one-off effect on the market and that consumers and automotive players alike took advantage of the situation. “With this in mind, we believe that the second half of the year will not be as healthy as what was recorded last year. The momentum of the first half is likely to reduce in the second half,” said the President and CEO.
Demand for the Aruz continues to be high and June sales were moderated to manage stocks, not that there was a drop in demand.It was also revealed that Perodua management has given the green light to further develop the Myvi GT concept that was displayed at the KL International Motorshow last year, with a view of selling it to the public.
Working harder on exports
“We have reached a stage in our history where we are earnestly seeking to build our brand abroad in a sustainable manner. However, this is on a long-term scale as brands do need time to build. Our hope is to make Malaysia proud,” he added.
Although Perodua had, in earlier years, been exporting its cars to some markets in Europe (including the UK), the increasingly stringent exhaust emission regulations had eventually impacted the exports and the cost of meeting the regulations was too high. Daihatsu too stopped exporting its products to Europe. However, in the ASEAN region, Perodua still had a small export volume and even supplied the Myvi to Daihatsu for sale as a Sirion in Indonesia under its own brand.
Singapore is one of the markets that Perodua exports to.
At the moment, Perodua exports to 7 countries and is putting in greater efforts to enter new markets in coming years. This takes time as thorough market studies are needed and the products correctly tailored to customer needs. In this respect, the experience of Daihatsu would be useful.
Recall for the Aruz
At today’s media briefing, Perodua also announced a recall for the Aruz which affects 3,000+ vehicles manufactured before February 15, 2019. The recall is precautionary and is related to the Electronic Control Unit (ECU) managing the side airbag. This is in response to an incident of unintended inflation of the airbag in a Toyota Rush in the Philippines but it is confirmed that there is nothing defective about the airbag itself.
Perodua officials explained that the road conditions in the Philippines and also in Indonesia are rougher than in Malaysia, and could be the cause. Owners have been sent letters asking them to bring their vehicles in for the precautionary check and if needed, rectification.
It’s usually the case new vehicle sales in Malaysia that there is a big drop in numbers for the month following a festive period. June this year was no exception, coming after the Hari Raya Aidilfitri holidays. Additionally, looking back to June 2018, that was also the first month of the GST tax holiday period when sales began to rocket as purchase prices were reduced.
Highest market share since July 2015
However, for Proton, there was still an upward surge one month after setting a sales high in May. In fact, with 7,615 vehicles delivered nationwide, the brand recorded its highest market share since July 2015 (estimated by Proton pending data to be released by the Malaysian Automotive Association). The share of 18.1% of the market was achieved in a month when the Total Industry Volume (TIV) was estimated to have shrunk by 30.8% to 42,090 units.
And even when comparing to June last year, Proton’s sales volume grew by 23%, helping the Malaysian carmaker finish second overall on the sales chart for the third consecutive month. It also contributed to an overall sales growth of 61% for the first 6 months of 2019, putting the company on track to achieve its sales targets for the year.
X70 leads SUV segment
The X70 SUV continues to be one of the stars and for the first half of the year, 15,175 units were delivered. It has cemented its position as the cumulative sales leader in the overall SUV segment, impressive for a newcomer that has been in the market less than a year.
The other models also performed equally well. Sales of the Saga continued to grow with 2,541 units delivered in June, contributing to a volume growth of 27% over the first 6 months of 2018. The other models, now updated with intelligent features, also saw strong bookings.
“By achieving a market share of 18.1% in June, Proton continues to show positive sales growth this year despite the tough market conditions following the Hari Raya holidays. Our year-to-date market share currently stands at 14.7% and is a big improvement of our 2018 figure of 10.8%. For the second half of the year, we will concentrate on continuing to build our sales and exciting the market further by introducing new and updated models as was promised at the beginning of the year,” said Dr Li Chunrong, CEO of Proton.
Tempering with a vehicle’s odometers is common practice among unscrupulous second hand car dealers. This is done to fool unwitting buyers into thinking that certain vehicles’ mileages are lower than expected. hpi, UK’s leading authority on vehicle checking services has come up with a few tips to help motorists spot signs of vehicle ‘clocking’.
In the UK, clocking is a term used to describe the act of tampering with a vehicle’s odometer for whatever reason. And lately, there has been an increase in such cases as scammers exploit loopholes in the law to fool buyers into coughing up more dough for a car that ‘hasn’t been driven much’.
Fortunately, there are telltale signs with vehicle clocking. And hpi has shared several of them to ensure that would-be buyers are better informed when looking for a new vehicle. Bear in mind, some of said advice may not be applicable to cars with digital odometers, which are just as easy to alter.
hpi has compiled the following hints and tips to help spot evidence of mileage falsification:
Check the service history – look at the mileage recorded at the time of the service
Contact the previous keeper – confirm what the vehicle’s mileage was at the time it was sold
Double check the odometer – scammers could wind back the mileage for a viewing then alter it again before collection
Trust your own judgement – is it 15 years old with only 32,000 km on the clock? Registered as a company car and done 20,000 km a year? Does anything about the vehicle history make you suspicious? Does everything add up?
Watch for signs of tampering and you could save yourself from a lot of trouble. Take whatever the dealer says with a pinch of salt. Finding one who is 100% honest isn’t easy these days. When in doubt, take your trusted mechanic with you for a thorough inspection of the car.
Honda customers in Kelantan should be happy with the news that the state’s first Honda 4S centre is now open for business. The 4S centre (Ban Chu Bee Honda 4S Centre), which comprises of sales, service and spare parts departments as well as a paint and body shop boasts a total build up area of 62,200 square feet.
It is said that a total of RM22 million was invested in the facility which features a slew of amenities for Honda owners or potential owners to enjoy while waiting to be attended to. Some of them include a customer lounge and an executive lounge, complimentary Wi-Fi services, kid’s corner and a surau.
There are 20 service bays available at the facility with bays for fast service (5 bays) , tyre service (1 bay), general repair (8 bays) and for air-conditioning (1 bay).
Previously, Honda was only capable of servicing 22,600 vehicles a year in Kelantan but thanks to the launching of the new facility, the ceiling has now been raised to 22,00 vehicles a year. The facility is not only the largest of its kind in Kelantan, but in the entire east coast too.
Honda has had a great start to 2017 with its BR-V receiving 10,000 bookings while the facelifted City received close to 3,000 bookings since its launch three weeks ago. The Japanese automaker isn’t done just yet, as it is currently planning to launch another two more models sometime in the coming months.
Speaking of the latest growth in customer base, Honda Malaysia’s Managing Director and Chief Executive Officer, Mr. Katsuto Hayashi said, “Last year, Honda Malaysia sold 91,830 units and of this total, the East Coast region contributed 8% with sales of more than 7,200 Honda vehicles. Kelantan contributed 34.6% towards this regional sales and Honda Jazz was the favourite among the customers here. In the past five years, Honda Malaysia sales in East Coast region have increased by 172%.”
Expect more from Honda soon but till then, if you plan on getting your Honda serviced at the latest 4S centre in Kelantan, contact Ban Chu Bee (Honda 4S Centre) at 09-744 3337 / 09-744 5893 which is located at Lot 1349, Jalan Pasir Mas-Salor 15100 Kota Bharu, Kelantan.
